Help with 401K investments

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AtlantaP
Posts: 4
Joined: Sat Feb 03, 2018 12:38 pm

Help with 401K investments

Post by AtlantaP » Sun Nov 11, 2018 11:32 am

I had thought my 401K with Fidelity had been doing ok and then just checked in to see that my average return rate for the year is just over 1%. I realize the market has been up and down but really thought I'd be doing a LITTLE bit better then that (my 2017 rate of return was 17%, not that I expected that on a regular basis). I've copied and pasted the funds, amount invested, return to date, etc below and am open to any advice on improving this moving forward.

Name Category  % Invested Balance Cost Basis YTD
FID 500 INDEX  (FXAIX) Large Cap 17.21% $35,980.45 $37,924.22 -4.76%
VANG DEV MKT IDX ADM  (VTMGX) International 13.01% $27,203.53 $25,128.16 -8.73%
TRP BLUE CHIP GR ADV  (PABGX) Large Cap 12.87% $26,905.18 $18,478.97 10.82%
FID SM CAP IDX  (FSSNX) Small Cap 10.74% $22,456.25 $24,186.56 -7.21%
PGIM TOTAL RTN BD Z  (PDBZX) Income 8.02% $16,772.49 $17,305.35 -2.78%
FID GOVT MMRK PRM  (FZCXX) N/A  7.53% $15,754.31 $15,754.31 1.18%
J H TRITON T  (JATTX) Small Cap 5.52% $11,535.37 $9,630.57 5.82%
FID EXTD MKT IDX  (FSMAX) Mid-Cap 5.26% $11,002.10 $11,851.56 -7.22%
DELAWARE VALUE INST  (DDVIX) Large Cap 5.15% $10,780.06 $10,384.56 4.43%
DLWR SM CAP VAL INST  (DEVIX) Small Cap 4.96% $10,376.96 $9,770.91 -5.71%
WF SPL MD CP VAL ADM  (WFMDX) Mid-Cap 4.88% $10,203.70 $8,656.76 -3.28%
INVS REAL ESTATE R5  (IARIX) Specialty 4.85% $10,149.82 $10,772.11 0.60%

AtlantaP
Posts: 4
Joined: Sat Feb 03, 2018 12:38 pm

Re: Help with 401K investments

Post by AtlantaP » Sun Nov 11, 2018 11:33 am

Argh, I had the numbers formatted beautifully and no matter what I try it smushes together. Understand if no one is willing to look at that.

Flyer24
Posts: 462
Joined: Sun Apr 08, 2018 4:21 pm

Re: Help with 401K investments

Post by Flyer24 » Sun Nov 11, 2018 11:39 am

Don’t focus on your returns so much. You have way too many funds. Pick a handful of Index funds and try to get your cost down.

Globalviewer58
Posts: 495
Joined: Fri Jul 18, 2008 3:26 pm

Re: Help with 401K investments

Post by Globalviewer58 » Sun Nov 11, 2018 11:48 am

You might check the date for your YTD calculation as current Fidelity 500 Index shows +2.98% return through 11/10/18 and your figures show -4.76%. The market was a bit volatile around the election time so performance YTD varied more than typical.

You might ask yourself what benefit you hope to realize with the multiple funds for Mid-Cap and Small-Cap investments. You could make things simpler by selecting a broad Total Market index fund and use tHat to replace the many equity funds you list.

Give yourself some credit for accumulating a decent balance in your 401k account. Persistent contributions over your working life will be a major factor in success along with an appropriate asset allocation and low cost funds.

pkcrafter
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Location: CA
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Re: Help with 401K investments

Post by pkcrafter » Sun Nov 11, 2018 12:02 pm

FID 500 INDEX (FXAIX) Large Cap 17.21% $35,980.45 $37,924.22 -4.76%
As of 11/9/18 FXAIX appears to be up 5.7%
I realize the market has been up and down but really thought I'd be doing a LITTLE bit better then that
Nope, you cannot predict or expect future performance on past performance, they are unrelated, uncorrelated.


Paul
When times are good, investors tend to forget about risk and focus on opportunity. When times are bad, investors tend to forget about opportunity and focus on risk.

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Duckie
Posts: 6073
Joined: Thu Mar 08, 2007 2:55 pm

Re: Help with 401K investments

Post by Duckie » Sun Nov 11, 2018 5:40 pm

AtlantaP wrote:I've copied and pasted the funds, amount invested, return to date, etc below and am open to any advice on improving this moving forward.
You have too many funds many of which are rather expensive. I don't know what your plan expense ratios are but the following are the best options of those listed:
  • FID 500 INDEX (FXAIX) -- Large caps, 80% of US stocks
  • FID EXTD MKT IDX (FSMAX) -- Mid/small caps, 20% of US stocks
  • VANG DEV MKT IDX (VTMGX) -- Developed markets, 80% of international stocks
  • PGIM TOTAL RTN BD (PDBZX) -- US bonds

delamer
Posts: 6428
Joined: Tue Feb 08, 2011 6:13 pm

Re: Help with 401K investments

Post by delamer » Sun Nov 11, 2018 6:07 pm

Duckie wrote:
Sun Nov 11, 2018 5:40 pm
AtlantaP wrote:I've copied and pasted the funds, amount invested, return to date, etc below and am open to any advice on improving this moving forward.
You have too many funds many of which are rather expensive. I don't know what your plan expense ratios are but the following are the best options of those listed:
  • FID 500 INDEX (FXAIX) -- Large caps, 80% of US stocks
  • FID EXTD MKT IDX (FSMAX) -- Mid/small caps, 20% of US stocks
  • VANG DEV MKT IDX (VTMGX) -- Developed markets, 80% of international stocks
  • PGIM TOTAL RTN BD (PDBZX) -- US bonds
Agreed. (And if there are other funds available that you haven’t listed then there could be better options.)

You have 3 funds labeled as large cap, 2 funds labeled as mid cap, and 3 funds labeled as small cap. Odds are high that you are adding complexity but not acual diversification.

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